According to a recent study, 54 percent of customers wanted robust tools to help monitor their budgets and make real-time adjustments. Interestingly, 41 percent of customers were “very willing” to take financial advice from AI-powered applications.
Fremont, CA: The technology has permanently changed the financial services industry. Traditionally, customers had to visit their local banks to make transactions or balance their checkbooks manually. Today, Fintech has simplified managing finances, with access to all kinds of accounts, just a click away.
However, new applications are not the only technology that is molding the modern financial services. Banks and other financial institutions are leveraging modern technologies in several ways to enhance customer experience, streamline processes, and expand their services. With artificial intelligence, blockchain, and data analytics, the financial industry is primed for a transformation. These are the tech trends in 2020.
How AI Transforms the Financial Industry
The power of AI has touched all industry verticals, and the financial landscape is no different. A few of its uses have been around for a while, including using AI and predictive analytics in predicting who should be able to pay back a loan. Evidently, that use has expanded as banks and other financial organizations have gone digital.
Today, AI assists chatbots to give financial advice, helps in fraud detection, and can even help guide customers’ investments. According to a recent study, 54 percent of customers wanted robust tools to help monitor their budgets and make real-time adjustments. Interestingly, 41 percent of customers were “very willing” to take financial advice from AI-powered applications.
Increased Use of Data Analytics in the Financial Industry
The financial industry is leading in the adoption of data analytics to help make lending decisions. However, with the advent of advanced technologies such as the Internet of Things and other digital devices, there’s been a significant increase in available information for financial services firms to track. Today, information from every swipe of a debit or credit card can be gathered, allowing financial institutions to detect fraud efficiently and better assess risks, which ultimately gives them a competitive edge. Analytics helps banks gain insights into customers’ behaviors, which allows them to enhance the branch experience as well.
Securing Financial Industry with Blockchain
Blockchain has been a key player in the financial industry for a while. However, today, there is significant growth in the use of technology. No longer just for cryptocurrency, blockchain is ripe for catering to the security needs of the financial industry, with multiple points of verification built into every transaction. That multipoint verification secures information being transmitted and creates detailed records every step of the way. As the technology makes peer-to-peer transfers in a decentralized network, an intermediary to charge fees is absent. From monetary transactions to transferring contracts, the financial industry will be using blockchain technology more as popularity grows.